Document background
The Founder Stock Purchase Agreement is a crucial document used when establishing initial ownership in a new company under English and Welsh law. It's typically implemented during company formation or immediately after incorporation when founders are acquiring their initial equity stakes. The agreement details the terms of share purchases, including consideration, vesting schedules if applicable, and any restrictions on transfer. This document is essential for startups and new businesses to clearly document founder ownership, protect both company and founder interests, and ensure compliance with UK corporate law requirements. It forms part of the company's fundamental documentation and often works in conjunction with the shareholders' agreement and articles of association.
